robertogallardo@msstate.edu

1. The Digital Age:
So What?
Dr.Roberto Gallardo
Associate Extension Professor &Leader
MSU Extension Intelligent Community Institute
@robertoge

2. • CEDFundamentals
• CEDFrameworks
• Digital Age Implications
• IntelligentCommunity
• Checklist
What’s ahead …

3. KeyConcepts
• Community
• Geographic defined place where people interact
• Growth Vs.Development
• Growth:quantitativeincrease
• Development:change directed toward particular social or
economicgoal
• SustainableDevelopment
• Meets needs of present generations without compromising
ability of future generations to meet their needs

4. KeyElements
• Carries out important activities and functions to
serve itsresidents
• Production-distribution-consumption
• Socialization
• Institutions: rules and organizations, including
informal norms, that coordinate humanbehavior
• Family
• Economic
• Education
• Political/Government
• Faith-based/religious
• Associations

5. Linkages
• Capacity of communities to carry out major
functions depends on nature and strength of
localinstitutions
• Horizontal: withincommunity
• Vertical: with externalresources

6. Community Development: Definition
“Group of people in a locality initiating a social
action process – i.e. planned intervention – to
change their economic, social, cultural, and/or
environmental situation.”
Source:Christenson& Robinson(1989)

7. Sustainability: Community Views
Unconnected/Silos Interconnected/Linkages
Interdependent/Nested/Systems
Source:SustainableMeasures

8. Community Economic Development
• Community development (CD) = social & community
• Economic development (ED) = business & industry
• CD + ED = CED (community economic development)
• CED allows residents to mobilize and build assets to
improve their quality of life in a sustainable way

9. Frameworks & Strategies
• Technical assistance
• Self-help (asset-mapping)
• CAREmodel
• Cluster-based economicdevelopment
• Community capitals
• IntelligentCommunities

10. CAREModel
Create: entrepreneurship primarily
A ttract:recruitexternalbusinesses
Retain: keep existing businesses
E pand: help existing businesses grow

11. Cluster-based Economic Development
• Comparative vs. competitiveadvantage
• Geographic concentration of relatedindustries
• More innovation than in “isolation”
• Strategic industrial attraction to plug “leaks”

12. Community Capitals
Source:Olson(2006)
cited in Jacobs(2007)
Political
Inclusion,voice,power
Financial
Income,wealth,security,
credit,investment
Natural
Air,soil, water (quality &
quantity),landscape,
biodiversity
Cultural
Cosmovision,language,
rituals,dress
Human
Self-esteem, education,
skills,health
Built
Water systems,sewers,
utilities, health systems
Social
Leadership,groups,
bridging& bonding
networks,trust,reciprocity
Outcomes
Healthyecosystems Vibrant
regionaleconomies
Social equity and empowerment

13. Community Capitals
Source:Jacobs(2007)
• Jane Q. wants a walking trail …
Description CapitalsInvolved
Takes leadership development class learning new skills  Human
Partners with local hospital that wants to implement wellness campaign  Social
Works with local parks & recreation to identify land  Natural
State senator informs of grant that can be used  Political
Local tourism board likes the idea and provides additional funding  Financial
City and county build trail infrastructure  Built
Local historical society adds historic markers  Cultural

14. And? Jane’s trail …
• Community buy-in
• Sustainable
• Nobody can do italone
• Part of larger jigsawpuzzle

15. DIGITAL AGE & INTELLIGENT
COMMUNITIES

16. Technology is adopted faster …

17. • Telephone 75years
• Mobile phone 16years
• World Wide Web 7years
• Facebook 4years
• Instagram 2 years
• PokemonGo 1month
Source:Twitteruser @ValaAfshar;ITU; Statista; BCG Research
Reaching 100 million users worldwide

18. What’s changed?

19. 300 hrs. ofvideos
uploaded toYouTube
110,040 Skype calls
77,160 hours ofvideo
streamed on Netflix
694 Uberpassengers
takerides
51,000 apps
downloaded(iTunes)
Source:Domo
Worldwide every minute of 2015

20. Mobile Explosion

21. Mobile Explosion
80%
of Internet usage will
be mobile by 2018
Source: Website Magazine

22. The Digital Economy
• By 2016, will employ 32 million + people than in 2010
• By 2020, will reach $6.6 trillion in G-20 economies
• Real threat to economic growth: digitaldivide
Source:BostonConsultingGroup

23. Digital Potential
• Dozens ofindicators
• Building digital assets
• Expanding digital usage
• Creating digital workforce
Source: McKinsey Global Institute (2015)
18%

24. Digital Age Characteristics
• Exponential
• Digital
• Combinatorial
• Disruptive
Source:Brynjolfsson,E. & McAfee, A. (2013),The SecondMachineAge; McQuivey,
J. (2013).DigitalDisruption– Unleashingthe Next Wave of Innovation

25. Exponential, huh?
Source:Twitteruser@ValaAfshar

26. If a VW 1971 Beetle improved as did computer chips…
• Would reach 300,000 mph
• Fuel economy of 2 millionmpg
• Would cost 4cents
Exponential, huh?
Source: Thomas Friedman, New York Times

27. Digitization, huh?
Source:Harvard InnovationLab

28. • Internet of Everything (IoE)
• “Physical world can now be digitized, monitored,
measured, and optimized.” – ProjectSyndicate
• At least 50 billion devices willbe
connected by 2020 – Cisco (2014)
• “IoE is a $19 trillion global opportunity
over the next decade” – Cisco(2014)
• Up to $11 trillion annual economic impact
in 2025 – McKinsey(2015)
Digitization, huh?

29. • Technologylag
• Artificial Intelligence
• Deep learning algorithms
• Zero to expert in 8hours
• X-rays & CTscans
• Skincancer
• Breakout arcadegame
• Electrify  Cognify
Combinatorial, huh?

30. 21st Century Oil
Source:Peter Sondergaard.Forbes
“Big Data is the oil of the 21st century. Oil is useless
thick goop until it’s refined into fuel. Big data’s version
of refined fuel—proprietary algorithms that solve
specific problems that translate intoactions.”
Hello algorithmeconomy!

31. Digital Disruption, huh?
“Investor concern over the
threat of new technologies
is overstated.”
– Blockbusteranalyst
report,1999
Source: Twitter user @ValaAfshar

32. Digital Disruption, huh?
• Kodak invented thedigital
camera in1975
• Filed for bankruptcy in2012

33. Most Valuable Companies 2006-2016
Source:WorldEconomicForum

34. Digital Disruption, huh?

35. Innovation
• “I have not failed. I have just
found 10,000 things that do
not work.” – ThomasEdison
• “The secret to creativity is
knowing how to hide your
sources.” – Albert Einstein

36. Innovation
• Using knowledge to create new products,services,
orprocesses
• Collaboration, collaboration, collaboration
• BEFORE: density of people andresources
• TODAY: virtual collaboration or open innovation

37. • Access to talent
• Networking
opportunities
• Proximity tocustomers
andsuppliers
How exactly does it work?
• With connectivity & know how
• Better air quality
• Natural amenities
• Lesstraffic
Innovators*
*Source:WashingtonPost
Rural areasoffer

38. • Geographicproximity
• The bigger,thebetter
• Tied to office,factory
• Massproduction
Economic landscape shifting
IndustrialEconomy DigitalEconomy
• Decentralization
• Economicgardening
• Work fromanywhere
• Openinnovation

39. 600,000
rooms
Source: WorldEconomicForum
Airbnb
4years
Hilton
93years

40. Digital
Globalization
• Digital flows—nonexistent 15 years ago—have a
larger impact on GDP than centuries-old goods trade
• Trade was once confined to advanced economies
and large multinational companies
• Today digital globalization has opened the door to
developing countries, small companies and start-
ups, and billions of individuals
Source:McKinseyGlobalInstitute. DigitalGlobalization: The New Era of GlobalFlows. March 2016

41. “Gig” Economy
Source: AmericanActionForum
Online GigEconomy
Workers who utilize new
technologies,marketsand
platforms for alternative
workarrangements
Uber
Lyft
Care
GigEconomy
Workers withalternative
work arrangements
IndependentContractors
Contingent Workers
TempWorkers
SharingEconomy
Goods and services that
employunder-utilized
assetsviaonline
marketplaces
Wikipedia
LinuxOS

42. Much easier to start anywhere …
Hewlett Packard
1939
Apple 1976
Amazon 1994
Google1998
Source:Twitteruser@ValaAfshar

43. Economic Paradigms
Communication
Transportation
Energy
Source:Rifkin,J. (2015). The Zero MarginalCost Society

44. 1st Industrial Revolution
Source:Rifkin,J. (2015). The Zero MarginalCost Society
Communication Energy Transportation

45. 2nd Industrial Revolution
Source:Rifkin,J. (2015). The Zero MarginalCost Society
Communication Energy Transportation

46. 3rd Industrial Revolution
Source:Rifkin,J. (2015). The Zero MarginalCost Society
Communication Energy Transportation

47. Tipping Points
Source:WorldEconomicForum,Deep Shift Report(2015)
2018 2023
82%
1st implantable
mobile phone
76%
1st 3D printed
liverimplant
2024
91% 84%
Unlimited and free 1st 3D printedcar
storage inproduction
2022
75%
30% ofCorporate
audits byAI
2025
79%
10% cars will
bedriverless
2026

48. Commerce
Communication
Productivity
Healthcare
Entertainment
Information
Education &
Employment
Innovation/Collaboration
Digital Age makes possible …
Banking/Funding Email
Credit:JordanaBarton.Federal Reserve Bank ofDallas

49. Holograms

50. Holoportation

51. Rememberthis?
• Weight 2.4lbs
• Talk time: 30 minutes
• Charge time: 10hours
• Cost:$3,999

52. RoboticChef

53. Retail enhancement …
• Virtual fitting

54. Downtown enhancement
• Interactivespaces

55. Civic Engagement
• 3,500 resident Spanishtown
• 50% of residents useTwitter
• 13% yearly savings;$380,000
• Suspicious activity
• School lunchmenu
• Cityservices
• Doctorappointments
Source:New YorkTimes

56. Precision Agriculture
• UAVs
• Self-guidedequipment
• Soil and moisture sensors
• Farmbot Genesis: grows food in yourbackyard
• Swagbot: cattleherding
• Rowbot: fertilize soil, mulch weeds, sow crops

57. 3D Spaces & Images
Source:Mashable

58. “An intelligent community is one that – whether
through crisis or foresight – understands the
enormous challenges of the digital age and has
taken conscious steps to prosper init.”
IntelligentCommunity
Source: Bell et al (2014). Brain Gain

59. Intelligent Community Indicators
Broadband
Knowledge
Workforce
Innovation
Digital
Equality
Sustain-
ability
Advocacy

60. Ask yourself …
• Does your community encouragedeployment
and adoption ofbroadband?
• Are programs in place to prepare theworkforce
with digital age skills such as soft skills, self-
directed, teamwork, student-centered learning,
programming,etc.?
• Does your community offer programsand/or
incentives for home startups or entrepreneurs?

61. Ask yourself …
• Does your local government interact digitally
with its residents through websites, social
media, andapps?
• Do hospitals, employers, and schoolshave
telehealthcapabilities?
• Do local businesses understand and implement
multiple online presence strategies?
• Are businesses and nonprofits aware of
crowdfunding and crowdsourcingstrategies?

62. Ask yourself …
• Are teleworking/telecommuting policies in
place or incentivized in any way?
• What about providing digital literacy and/or
access to computers and Internet for those that
cannot afford it or don’t know how to use it?
• Is there a strategy in place to proactively
manage the community’s online reputation?
(HINT: google yourcommunity)

63. Ask yourself …
• Are efforts being made – water conservation,
agro ecology, installation of solar panels and/or
windmills, etc. – so that natural resources and
livable conditions are available for future
generations?

64. Change is not easy …
“Doubt is an
uncomfortable
condition, but
certainty is a
ridiculous one.”
Voltaire

65. Digital Divide
• Divide between those with access
and know how versus thosewithout
access or knowhow
• Equivalent to not knowing howto
read or write 150 yearsago
• We’ve been down this road before…

66. Broadband Speeds & Access
33.781
12.016 12.7
27.017
11.243
16.0
27.975
16.978
32.2
10
5
0
15
20
25
30
35
40
Download(Mbps) No Broadband(%)Upload(Mbps)
U.S. KY SOAR
Source:FCC Form 477 (December 2015);
ProgressReports

67. % Pop. Without Access to 25/3
Source:FCC Form 477 (December 2015);
ProgressReports

68. Average DownloadSpeeds
Source:FCC Form 477 (December 2015);
ProgressReports

69. Average Upload Speeds
Source:FCC Form 477 (December 2015);
ProgressReports

70. Residential Fixed Connections
Source:FCC Form 477 (December 2015);
ProgressReports

71. Do I need faster Internet?
Do I need electricity when I
already use candles?
… is like asking…

72. That selfie generation …

73. Technology is making us antisocial …

74. Jobs Vs. Productivity
Source:BrookingsInstitution

75. Not all is great …
• Not a silver-bullet
• Chips & batteries
• Cyberattacks
• BigBrother
• ProfitablePrivacy
• Inequality
• 21st Century Institutions

76. Remember that in the digital age …
• Levels the playing fieldbetween
urban and rural
• Size does notmatter
• Eliminates “middle ofnowhere”
• When most people canwork
anywhere, where will they
choose to live andwork?

77. Contact Information
Dr.Roberto Gallardo
Associate Extension Professor & Leader
MSU Extension Intelligent Community Institute
Website: http://ici.msucares.com
Twitter: @robertoge
Email: roberto.gallardo@msstate.edu